Are you curious what a payment of “X” gets you these days? I certainly was, so I ran some calculations for you.
Are you curious what a payment of “X” gets you these days? I certainly was, so I ran some calculations for you.
Using a mortgage rate of 3.89%, here’s what you get.
Payment: Amortization: Mortgage:
$1,000 25 years $192,500
$1,000 35 years $232,000
$1,500 25 years $290,000
$1,500 35 years $345,000
$2,000 25 years $385,000
$2,000 35 years $462,000
$2,500 25 years $482,000
$2,500 35 years $576,000
$3,000 25 years $577,000
$3,000 35 years $807,000
I am always listening for your opinion so please feel free to comment below and check out my other blogs on this site. I am a Vancouver mortgage broker working with everyone from first home buyers to investors. At the same time I do my best to education the public on how to be more financially savvy over all. If you would like to learn more about mortgages and over all real estate, please check out www.jessijohnson.ca. To subscribe to my vblogs, please click here: www.firsthomeinfo.ca/blog
Curious how you can cut your mortgage in half? You should be, if you have a mortgage of course.
During a quick discussion with Dr. Singham (we have never met) at the Terminal City Club, I taught her how to cut her mortgage in half by simply not over leveraging yourself. All you have to do it use some of your prepayment options. Using a 25 year amortization, 5 year fixed term (rate doesn’t matter), use a bi-weekly accelerated payment and increase your payment by 20%. This will now off 12 year off your mortgage, almost cutting it in half. Keep in mind that you can still put balloon payments up to 20% of the original mortgage value each year. This gives you the potential to pay off your mortgage in less than 5 years without penalty.
I am always listening for your opinion so please feel free to comment below and check out my other blogs on this site. I am a Vancouver mortgage broker working with everyone from first home buyers to investors. At the same time I do my best to education the public on how to be more financially savvy over all. If you would like to learn more about mortgages and over all real estate, please check out www.jessijohnson.ca. To subscribe to my vblogs, please click here: www.firsthomeinfo.ca/blog
Certainly not the safest real estate investment concept but one that was been very successful for people in the past. Buying real estate on speculation essentially means you plan to make your capital (sale revenue) from the equity growth of the property, rather than obtaining a tenant and waiting for the years to pay off the mortgage. Purchasing pre-sale, waiting a few years and selling before completion is a perfect example. You are required to pay the deposit up front but that’s it. This has proven to be lucrative at times but quite the opposite when the property values decline. Remember to always be prepared (qualified) to complete the saleand be cognizant of the fact that the property value could decline instead of increase.
Do you have a rental property or are considering purchasing one? Make sure to seek advice from your accountant (hopefully a good accountant) regarding this type of real estate ownership. I am by no means an accountant but know a few good tricks. Did you know that the interest portion of your mortgage on a revenue property is tax deductible? Almost every expense you may have with regards to the revenue property is a write off. When you are purchasing or simply owning this type of real estate property, here are some examples:
Lawyer, inspection and appraisal costs when purchasing
Annual property tax (please don’t quote me, I am not positive about this)
Strata fees (if applicable)
Mortgage interest
All upkeep and repairs
Advertising costs for renters
etc.
Remember that owning a rental property is like owning a business. Make sure to take advantage of this. If the government is going to tax you for the rental income, you want to write as much of that off as you can. It’s much better to have the larger mortgage on your rental properties then on your principle residence. Unless of course the mortgage on your principle residence is used for a revenue property. Then this too would be tax deductible.
I am always listening for your opinion so please feel free to comment below and check out my other blogs on this site. I am a Vancouver mortgage broker working with everyone from first home buyers to investors. At the same time I do my best to education the public on how to be more financially savvy over all. If you would like to learn more about mortgages and over all real estate, please check out www.jessijohnson.ca. To subscribe to my vblogs, please click here: www.firsthomeinfo.ca/blog
